The Role of NFTs in the Metaverse

As the metaverse emerges and becomes less theoretical, the role of NFTs (nonfungible tokens)  in the metaverse will continue to evolve.  Every day, artists, brands, and others are finding new applications for NFTs that expand the ways NFTs will be used in the metaverse.

 

While so much of the metaverse is just emerging, we can explore some of the ways NFTs are shifting to help us predict where they may go in the future.

 

How Do NFTs Fit into the Metaverse?

 

If we envision the metaverse as a virtual world, where avatars roam and live in virtual property, wearing virtual clothes, and looking at virtual art, then NFTs become the means of acquisition. Many imagine a full metaverse that operates along with gaming models where users can play to earn digital currency.

 

Using NFTs virtual reality, users can buy digital real estate and be able to prove and demonstrate ownership. Even in today’s real world, users are using nonfungible tokens to buy digital assets in games, and other types of virtual land. 

 

Real-world fashion designers are already getting in on the action. Prestige Magazine explains, “The NFT has been the hottest topic recently and its biggest champions argue that fashion NFTs represent the next evolutionary step, whether it’s digital fashion skins for avatars or wardrobe collectibles that can be used in gaming and multiple metaverses.”

 

On the other hand, if we consider the metaverse to be a social experience, where people come together in a digital world to share events, or fanbases, then NFTs can be central too. Already companies like Bored Ape Yacht Club have created NFT memberships that offer buyers access to exclusive content when they buy a work of digital art.

 

According to Medium, “Rapper Travis Scott played a concert in Fortnite in April 2020, where 27 million people have participated. There are endless possibilities in virtual worlds.” In the metaverse, access to events like these can be in the form of NFTs.

Can NFTs be used in the metaverse?

 

Not only can NFTs be used in the metaverse, but NFTs may also become a standard method of tracking ownership. Because of blockchain technology, an NFT cannot be faked as a transaction record. It is probable that NFTs will be the standard deed of ownership for virtual real estate, the go-to ticket for accessing virtual events, and the perfect certificate of authenticity for digital art.

Why Do We Need NFTs in the metaverse?

 

In a digital world, assets can be faked, appropriated, or simply deleted. Users need records that are safe, stable, and fully verifiable to prove ownership. Smart contracts are secure, provable, and versatile.

 

Additionally, NFT marketplaces offer access to anyone who wishes to create and sell non-fungible tokens. Apart from the cost of minting NFTs, the technology democratizes the market. 

 

NFTs and the metaverse go perfectly together. As 101Blockchains puts it “The metaverse is a massive concept, and NFTs can serve as a key concept in the broad ecosystem.”

 

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